Executive Summary

Q4 2024 revenue was $621.3M (-7.2% YoY), while Adjusted EBITDA rose 5.5% to $78.2M with margin expanding 150 bps to 12.6%; diluted EPS was $0.11, with net income of $64.3M supported by a $55.2M gain on early extinguishment of debt .
Digital revenues reached $280.4M (+1.2% YoY; 45% mix), with digital-only subscription revenue up 17% to $49.0M and average monthly unique visitors at 200M (+7%) .
2025 outlook: same-store digital revenues +7–10% and digital mix ~50%; same-store total revenue down low single digits but trends expected to grow over the year; Adjusted EBITDA growth and free cash flow growth >40%; capital expenditures to increase and reduce 2025 FCF by ~$10M .
Capital structure: cash $106.3M, total principal debt $1,111.8M, first lien net leverage 2.7x; asset sale of the Austin American-Statesman expected Q1 2025 with proceeds used to reduce debt ($50–$60M in Q1; $60–$70M in H1) .
Near-term catalysts/risks: Google search policy changes weighed on partnership revenue; management highlighted AI-driven Dash and monetization initiatives, plus ongoing ad-tech legal actions vs Google (DOJ/Texas) that could impact the ecosystem .

What Went Well and What Went Wrong

What Went Well

“Total digital revenues exceeding 45% of total revenues in the fourth quarter, and amounting to over $1.1 billion for the year” with digital revenues up >5% YoY in 2024, underpinning the transformation .
Adjusted EBITDA and free cash flow grew for the full year; Q4 Adjusted EBITDA rose 5.5% to $78.2M and margin expanded to 12.6% (+150 bps), reflecting improved trends and cost control .
Digital-only subscription revenue +17% and digital-only ARPU +12.5% in Q4; audience scale sustained at 200M average monthly unique visitors (+7%) .

What Went Wrong

Reported revenue declined 7.2% YoY in Q4, impacted by the sale/shutdown of non-strategic assets; same-store revenues still down 5.5% (though improving) .
DMS faced higher churn and macro softness (home services), and Google’s fluid search policy changes negatively affected partnership revenues .
2025 near-term cadence: management expects Adjusted EBITDA down YoY in Q1 and FCF down YoY in Q1 before a back-half ramp and >40% full-year FCF growth; capex step-up reduces FCF by ~$10M in 2025 .

Financial Results

Summary vs prior quarters and YoY

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$639.8	$612.4	$621.3
Revenue YoY %	(4.8)%	(6.2)%	(7.2)%
Diluted EPS ($)	$0.09	$(0.14)	$0.11
Net Income ($USD Millions)	$13.7	$(19.7)	$64.3
Adjusted EBITDA ($USD Millions)	$74.6	$62.9	$78.2
Adjusted EBITDA Margin %	11.7%	10.3%	12.6%

Note: Q4 net income included a $55.2M gain on early extinguishment of debt .

Consensus vs Actual (S&P Global)

Metric	Q2 2024 Consensus	Q3 2024 Consensus	Q4 2024 Consensus	Q4 2024 Actual
Revenue ($USD Millions)	N/A	N/A	N/A	$621.3
Primary EPS ($)	N/A	N/A	N/A	$0.11
EBITDA ($USD Millions)	N/A	N/A	N/A	$78.2

Estimates unavailable via S&P Global at time of request; unable to compare to consensus (values default to S&P Global when available).

Segment Revenue Breakdown

Segment ($USD Millions)	Q2 2024	Q3 2024	Q4 2024
Domestic Gannett Media	$491.9	$468.5	$482.3
Newsquest	$61.3	$59.5	$58.3
Digital Marketing Solutions	$123.8	$119.9	$117.0
Corporate and other	$1.3	$1.4	$1.4
Intersegment eliminations	$(38.4)	$(37.0)	$(37.7)
Total	$639.8	$612.4	$621.3

KPIs

KPI	Q2 2024	Q3 2024	Q4 2024
Digital-only ARPU (Total) ($)	$7.62	$8.16	$7.93
DMS Core Platform ARPU ($)	$2,777	$2,777	$2,788
DMS Core Platform Avg Customer Count (000s)	14.7	14.3	13.9
Digital-only Paid Subscriptions (000s)	2,034	2,056	2,063
Digital-only Subscription Revenue ($USD Millions)	$46.3	$50.1	$49.0
Digital Advertising Revenue ($USD Millions)	$84.5	$84.7	$92.7
Avg Monthly Unique Visitors (Millions)	185	203	200

Guidance Changes

Metric	Period	Previous Guidance (Q3’24)	Current Guidance (Q4’24)	Change
Total Digital Revenues Growth (same-store)	FY2025	>10% YoY; digital mix to 50% in 2025	+7% to +10% YoY; digital mix to ~50% in 2025	Lowered growth range; mix maintained
Total Revenues (same-store)	FY2025	Grow low single digits	Down low single digits; same-store trends expected to grow over 2025	Lowered full-year same-store outlook; positive exit implied
Adjusted EBITDA	FY2025	Ongoing growth	Growth vs prior year; Q1 down YoY, back-half up	Cadence clarified (front-half down, back-half up)
Cash from Operations	FY2025	Growth; ~30% CAGR by 2026	Growth >30% vs prior year	Maintained (near-term phrasing)
Free Cash Flow	FY2025	Accelerated; ~40% CAGR by 2026	Growth >40% vs prior year; capex adds ~$10M headwind	Maintained headline; new capex headwind
Asset Sale Proceeds	H1 2025	$45–$50M (FY2024 outlook)	$60–$70M in H1; $50–$60M in Q1	Raised proceeds trajectory
Net Income	FY2025	Improve to positive (multi-year)	Expected to improve vs prior year	Maintained direction

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2024)	Trend
AI/Technology initiatives	Microsoft Copilot Daily Briefing syndication; early-stage AI partnerships	DMS “Dash” AI optimization; “DMS Zero” onboarding; plan to scale Dash deeper into client ops	Building from pilots to scaled deployment
Macro/home services	Home services softness tied to rates; early signs of improvement post rate cuts	DMS churn elevated; macro still influences spend; expecting back-half DMS growth	Improving backdrop; gradual recovery
Partnerships/e-commerce	BetMGM partnership to monetize sports audience	Reuters bundled content offering; Google search policy changes pressured partner revenue	Expanding monetization; search volatility a headwind
Digital audience scale	200M+ uniques milestone in Q3; engagement as leading indicator	200M uniques sustained; double-digit pageview growth continues	Sustained scale; engagement rising
Legal/regulatory (Google ad-tech)	DOJ case watched closely; Texas AG case timelines	DOJ ruling expected; Texas case trial timing; Gannett case proceeding as planned	Legal process advancing; potential ecosystem impact

Management Commentary

CEO: “In 2024, we delivered full-year growth in both Adjusted EBITDA and free cash flow… [and] total digital revenues increased to 44% of total revenue… In 2025, our expectation is that total digital revenues will make up 50% of our total revenue during the year” .
CFO: “Adjusted EBITDA totaled $78.2 million… margin was 12.6% in Q4, a 150 basis point improvement… operating expenses decreased ~6% reflecting cost management” .
CEO on DMS: “We expect… restore our DMS business to growth during the year… leveraging our AI-powered solution Dash to optimize campaigns” .
CEO on partnerships: “Google’s updated and fluid search policies and algorithm changes… negatively impacted many media companies, Gannett included,” emphasizing flexibility and e-commerce potential .
CFO on capital structure: “Cash $106.3M; net debt ~$1B… expect to pay down $50–$60M in Q1 from asset sales, and $60–$70M in H1” .

Q&A Highlights

Digital growth composition: 2025 +7–10% same-store digital growth to be a mix of digital advertising (throughout year) and DMS (primarily back-half) .
Asset sale proceeds: ~$50–$60M expected in Q1; $60–$70M in H1; proceeds to debt reduction .
Capital structure roadmap: target first lien net leverage ~2x by year-end; potential refinancing into lower-cost bank markets thereafter; aim to reduce remaining converts’ dilution (likely post-2025) .
Legal context: DOJ case timeline and Texas AG case moving forward; Gannett’s case progressing with expert work; expectation of favorable DOJ ruling noted (not yet observed) .
Reuters bundled content: near-term revenue opportunity characterized as low- to mid-single-digit millions; potential to expand over time .
Digital subscriber growth levers: personalization, local content focus, pricing optimization, data-driven engagement .

Estimates Context

Consensus EPS, revenue, and EBITDA for Q4 2024 were unavailable via S&P Global at the time of this analysis due to request limits; as a result, we cannot quantify beats/misses vs Wall Street. When available, we anchor on S&P Global consensus for estimate comparisons.
Implication: Given actuals (revenue $621.3M; diluted EPS $0.11; Adjusted EBITDA $78.2M), analysts may reassess DMS back-half ramp, digital advertising monetization effectiveness, and capex-driven FCF timing in 2025 .

Key Takeaways for Investors

Digital mix and monetization are improving: digital revenues 45% of total in Q4; digital-only subscription revenue +17%; ARPU elevated—structural tailwinds into 2025 .
Cost discipline is driving margin gains: Adjusted EBITDA margin expanded to 12.6%; operating expenses down ~6%—supporting earnings resilience despite revenue headwinds .
Capital structure de-risking continues: Austin sale plus other assets to deliver $50–$60M in Q1 and $60–$70M in H1; ongoing amortization and FCF point to >$100M debt reduction in 2025 .
Near-term cadence matters: Q1 2025 Adjusted EBITDA and FCF expected down YoY; back-half ramp and >40% full-year FCF growth targeted—positioning for 2026 targets .
DMS is a swing factor: macro recovery and AI-driven Dash/DMS Zero adoption are key to restoring DMS growth—watch churn/retention metrics and ARPU stability .
Ecosystem risk: Google search policy changes weighed on partnership revenue; flexibility and e-commerce monetization initiatives aim to offset volatility .
Legal proceedings: DOJ/Texas ad-tech cases progressing; while outcomes are uncertain, favorable rulings could structurally benefit publisher economics .

All figures and statements above are sourced from GCI’s Q4 2024 8-K/press release and earnings call, and prior quarter materials: .

Gannett Co., Inc. (GCI)·Q4 2024 Earnings Summary